Subsidizing a sports arena in a bankrupt city: Detroit's Little Caesars Arena.
Saved in:
| Title: | Subsidizing a sports arena in a bankrupt city: Detroit's Little Caesars Arena. |
|---|---|
| Authors: | Sroka, Robert (AUTHOR) |
| Source: | Social Science Quarterly (Wiley-Blackwell). Sep2024, Vol. 105 Issue 5, p1691-1705. 15p. |
| Subjects: | Tax increment financing, Hockey teams, Municipal bankruptcy, Real estate development, Arenas |
| Abstract: | Objectives: The potential for ancillary real estate transformation and downtown revitalization has moved to the forefront of sports venue subsidy arguments. Despite the City of Detroit being in the largest municipal bankruptcy in U.S. history at the time, $324 million in public funding was directly provided to Little Caesars Arena, a new home for the Detroit Red Wings hockey team. Using the Detroit context, this article examines how a major arena subsidy deal arose in a severely financially distressed city. Methods: Using a snowball technique, documents were collected from government, media, industry, community, legal, and academic sources to inform a retrospective, single case study. Over 300 documents covering a period from 1992 to 2021 were then reviewed for prospective relevance. A review of secondary media sources was conducted in lieu of traditional interviews. Results: The arena funding outcome is best explained by three interrelated aspects: local growth coalitions, real estate development promises, and lacking procedural and financial transparency exacerbated by both the chosen funding mechanism of tax increment financing (TIF) and the bankruptcy. Conclusions: Where flexible financial subsidies and arena deal making are concerned, procedural transparency matters. Growth coalitions and rent‐seeking team owners can use the earmarked nature of TIF to circumvent traditional budgetary processes and mute prospective opposition through promises of self‐financing subsidies that will not result in new tax rate hikes. For venue deals where the substance is in the details of contractual obligations, transparency and adequate time for scrutiny are especially important. [ABSTRACT FROM AUTHOR] |
| Copyright of Social Science Quarterly (Wiley-Blackwell) is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Psychology and Behavioral Sciences Collection |
|
Full text is not displayed to guests.
Login for full access.
|
|
Be the first to leave a comment!
